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Understanding Inventory, Appraisement, and Claims in Estate Administration

This guide provides an overview of the processes involved in the inventory, appraisement, and claims related to estates. It details the roles of personal representatives, the appraisement standards, necessary documentation, and the deadlines for submitting claims. Understanding these elements is crucial for interacting with creditors, heirs, and beneficiaries, ensuring compliance with legal requirements, and protecting the estate's interests. Important legal references and potential penalties for non-compliance are also discussed.

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Understanding Inventory, Appraisement, and Claims in Estate Administration

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  1. Inventory, Appraisement, andList of Claims

  2. Purposes • 1. Vis-à-vis Creditors • 2. Vis-à-vis Heirs and Beneficiaries

  3. Not waivable • Not waivable by: • Testator • Heirs or beneficiaries • Why not? • Note: Not need if will filed as muniment of title.

  4. 1. Inventorypc § 250; ec § 309.051 Contents: • All real property located in Texas • All personal property wherever located • If decedent was married at time of death, indicate whether separate or community • Note 3, page 124

  5. 2. Appraisement • Value of each asset as of date of death. • Who values? • Personal representative • Appraisers • PC § 248 • EC § 309.001

  6. 2. Appraisement • Who may ask for appraisers? • Interested person • Court, on its own motion

  7. 2. Appraisement • Standard • Court must have good cause to appoint.

  8. 2. Appraisement • Number • One, two, or three at court’s discretion

  9. 2. Appraisement • Fee • At least $5.00 per day.

  10. 3. List of ClaimsPC § 251; EC § 309.052 • List of claims due and owing the estate • Decedent was a creditor • Avoid “rookie mistake” of listing decedent’s debts.

  11. Supported by Sworn AffidavitPC § 252; EC § 309.053 • Personal representative must swear under oath that IAL is true and complete.

  12. TimePC § 250; EC § 309.051 • 90 days from when PR qualified • Court may shorten time period

  13. Action by CourtPC § 255; EC § 309.054 • Court examines and approves or disapproves. • If court disapproves, PR must resubmit within time set by court but no longer than 20 days.

  14. Affidavit in Lieu of InventoryPC § 250; EC § 309.056 • New procedure created in 2011. • Purpose = privacy

  15. Affidavit in Lieu of InventoryPC § 250; EC § 309.056 • Prerequisites: • Independent administration, and • No debts (except secured debts, taxes, and administration expenses) remain by the time the inventory is due (90 days after appointment)

  16. Affidavit in Lieu of InventoryPC § 250; EC § 309.056 • PR must still prepare inventory. • PR must give to any heir or beneficiary who makes a written request. • PR may give to anyone PR believes in good faith to be an interested person.

  17. Affidavit in Lieu of InventoryChanges effective 1/1/14 • Procedure available even if will says “file inventory” • To rebut claim that standard language requires inventory filing. • “Safe harbor” language revised to say, “return of any required inventory.”

  18. Affidavit in Lieu of InventoryChanges effective 1/1/14 • Executor cannot be held liable for the decision to use, or not use, the affidavit in lieu of inventory procedure.

  19. Penalty for Failure to ComplyNew EC § 309.057 • If PR disobeys a show cause order without good cause, court may impose a fine of up to $1,000.

  20. Cases • Garner v. Long – p. 127 • Lee v. Lee – p. 131

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